Notice of Intention to Transfer Ownership

Preliminary Notice of Transfer - A preliminary notice of transfer is an entry in Section II of the land register that secures the buyer’s future claim to ownership between the notarization of the purchase agreement and the final transfer of title. It protects the buyer from the seller selling the property a second time or subsequently encumbering it with real estate liens. The legal basis is found in Sections 883-888 of the German Civil Code (BGB).

How the priority notice of conveyance protects the buyer

When purchasing real estate, there is a time gap between the notarized purchase agreement and the transfer of ownership in the land register. In practice, this gap often spans several weeks to months, as the real estate transfer tax must first be paid, the tax clearance certificate from the tax office obtained, and any preemptive rights of the municipality (Section 28 of the German Building Code (BauGB)) and under the German Condominium Act (WEG) (Section 20 WEG) must be verified. During this phase, the seller remains the formal owner and could theoretically dispose of the property.

The priority notice of conveyance under § 883 BGB prevents precisely this risk. It is applied for by the notary at the competent land registry office immediately after the notarial certification and entered in Section II of the land register. From this point on, any acts by the seller that would impair the buyer’s claim to ownership are invalid with respect to the buyer (Section 883(2) BGB). This applies both to a possible double sale to a third party and to the subsequent registration of mortgages, land charges, or other encumbrances.

It is important to understand that the priority notice of conveyance does not establish a right of ownership. It merely secures the claim to transfer of ownership. The buyer only becomes the actual owner upon registration as the new owner in Section I of the land register.

Costs and Priority Issues

The costs for registering the priority notice of conveyance are governed by the Court and Notary Fees Act (GNotKG) and amount to half the fee for the subsequent transfer of ownership. For a purchase price of 400,000 euros, the costs for the priority notice are approximately 635 euros. These costs are generally borne by the buyer as the beneficiary.

Priority of the priority notice of conveyance: The priority notice of conveyance is assigned priority at the time of its registration. If a land charge was registered prior to the purchase agreement, that land charge takes precedence-the priority notice of conveyance only protects the buyer once it has been registered. This is precisely why it is so important to register the priority notice as soon as possible after the notarization. In practice, it typically takes one to three weeks between notarization and the registration of the priority notice-during this time, a risk theoretically still exists.

Registration and Cancellation Process

The notary applies for the priority notice of conveyance at the land registry office at the same time as the notarization of the purchase agreement. A separate authorization from the buyer is not required, as the application is a standard part of the notarial purchase settlement. The land registry office typically registers the priority notice within a few days to two weeks.

As soon as the priority notice is entered, the notary receives confirmation and initiates the rest of the settlement process: He sends the buyer the notice of due date, which confirms that all requirements for the payment of the purchase price have now been met.

After payment of the purchase price, receipt of the tax clearance certificate, and submission of the waiver of preemptive rights, the notary applies for the final transfer of ownership. Upon registration of the buyer as the new owner in Section I, the priority notice of conveyance becomes void and is automatically deleted-at no additional cost.

Priority Notice of Transfer for Real Estate Developers (MaBV)

In real estate development projects, the priority notice of transfer plays a special role. The Real Estate Brokerage and Development Ordinance (MaBV) stipulates that payments from the buyer to the developer may only be made once either:

• The priority notice of conveyance has been entered in the land register and
• The property is free of any prior claims that could impair the buyer’s rights, or
• The first-ranking mortgagee (e.g., the developer’s financing bank) has issued a declaration of indemnity

This protects the buyer from paying money before they have secured a legally protected position. We recommend that buyers in developer projects have the payment plan reviewed for MaBV compliance by a notary or a specialized attorney.

Practical Tip for Buyers in Nuremberg and Franconia

In the Nuremberg metropolitan region, the land registry offices are located at the respective local courts-for Nuremberg at the Nuremberg Local Court, and for Fürth and Erlangen at their respective local courts. Processing times for registering the priority notice of conveyance vary depending on the land registry office’s workload. In Nuremberg, experience shows that processing takes one to three weeks.

We recommend that buyers transfer the purchase price only after the notary has issued the notice of due date and the priority notice of conveyance has been verifiably entered in the land register. Making payments beforehand-even at the seller’s insistence-carries a significant risk. A reputable seller and notary will never insist on payment before the priority notice is entered.

Frequently Asked Questions

Is the priority notice of conveyance mandatory for every real estate purchase?

The priority notice of conveyance is not legally required, but every reputable notary applies for it as standard practice-it is an integral part of every notarized purchase agreement in Germany. Waiving this would entail significant risks for the buyer: Without a priority notice, the buyer has no protection under land registry law against double sales, subsequent encumbrances, or the registration of foreclosure proceedings against the seller. In practice, waiving the priority notice is extremely rare and should be viewed as a red flag regarding the legitimacy of the contract.

What happens if the seller sells to a third party despite the priority notice?

A sale to a third party after the priority notice of conveyance has been registered is ineffective against the buyer with the priority notice (§ 883 (2) BGB). The buyer may demand the cancellation of the conflicting entry and enforce their claim to ownership-in court if necessary. In this case, the third party has claims only against the seller (for damages), but not against the buyer with the priority notice. Actual double sales are very rare in practice because the notary applies for the priority notice of conveyance immediately after notarization, and all professionals involved are familiar with these protective mechanisms.

How long does the priority notice of conveyance remain in the land register?

The priority notice of conveyance remains registered until the final transfer of ownership to the buyer has taken place and it is officially deleted. Normally, this period lasts two to six months. If the purchase agreement is rescinded-for example, because the buyer fails to pay the purchase price or because a condition precedent is not met-the priority notice must be removed from the land register with the buyer’s authorization to delete it. Obtaining such authorization is difficult in cases of dispute-therefore, it is important to draft the purchase agreement carefully with clear rights of withdrawal.

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